New research within the financial industry has revealed most advisers foresee sustained and increased activity in the QROPS market as awareness of the transfer also increases. In total 330 advisers took part in the study, the majority, 68 percent, believed that they will create more QROPS contracts in 2011, 28 percent believe they will create no more than before and just 4 percent believed there will be less QROPS.
Interest in the QROPS is growing in popularity as the UK government continues to introduce cuts and sanctions that hinder the earning potential of its citizens.
Experts in the financial sector have stated that the amount of people opting to transfer their UK pensions into a QROPS (Qualified Overseas Pensions Schemes) is on track to increase for the second consecutive year.
An adviser who contributed to the research said: “As knowledge and awareness improves around the benefits and potential suitability of QROPS it does not surprise me that advisers are predicting a further surge in the use of the schemes in the coming year. QROPS have become an integral part of the international advisers' advice process and therefore the popularity among overseas clients with UK pensions schemes will, in my view, continue to grow not just now but beyond the next 12 months as well.”
QROPS pensions transfers offer an excellent opportunity for UK citizens to preserve wealth and make the most of their UK pensions, providing that they are leaving, or have left, the United Kingdom. A QROPS allows anyone who has a UK pension holders to transfer their existing pension into a recognised and approved offshore jurisdiction, and subsequently create new benefits including the potential to legitimately avoid UK taxes.